Use Invoice Factoring For Your Pallet Company
Posted on March 26, 2014 in Manufacturing
Past due invoices mean that the pallet manufacturer is not getting the regular revenue he needs to meet his ongoing financial obligations. Without cash flow, the pallet company is in jeopardy of not being able to complete orders and keep customers happy. The solution to creating cash flow for pallet companies is invoice factoring. Unlike bank lending, invoice factoring does not add more debt to the company bottom line. Instead of adding principle, interest and service charges to the pallet companies books, as bank lending would do, invoice factoring uses existing outstanding invoices to create a reliable and steady cash flow.
An invoice factoring company looks at outstanding invoices as assets that represent cash. Those assets can be utilized as collateral for cash advances that will fund an ongoing business line of credit that the pallet maker can use to pay his bills. As long as the pallet maker continues to generate approved invoices to creditworthy clients, then he will be able to sustain a cash flow through invoice factoring that will keep his company in business for a long time to come. The best way to get quality invoice factoring services is to deal with an experienced financial provider such as 1st Commercial Credit.
1st Commercial Credit Will Use Invoice Factoring To Keep The Pallets Flowing
1st Commercial Credit is a company that utilizes an international network of affiliates to advance cash in up to 17 different currencies. No matter where your pallet manufacturing company is located, we have the resources to turn your invoices into cash. Our invoice factoring process will use an Internet-based system to approve invoices and determine the credit status of your clients in minutes. Once an invoice is approved, we can get cash into your bank account in 24 hours or less. That is how our system works and we have spent years refining it to make it as efficient as possible.
We use your customers' credit scores to approve your invoices and not your company's credit profile. This allows us to offer our services to companies that have bad credit and start-up organizations that have no credit at all. Contact 1st Commercial Credit today and we will show you how fast we can get you the cash you need to keep your pallet business growing and allow you to achieve all of your company's financial goals.
Shipping products in bulk packaging is a lot more complicated than it sounds. The average person who is not exposed to the logistics industry would think that piling items into a big truck is adequate for transport. But any logistics expert will tell you that every item which is shipped, from bags of fertilizer to pick-up trucks, is secured in some way. Most people do not realize just how much items in the back of a tractor trailer tend to shift around. If those items are allowed to bang around inside the truck, then they will arrive to their destination in pieces and of no use to anyone.
The need to secure product in shipping has been a domain that has been dominated for years by the wooden pallet industry. There have been other shipping innovations that have come along down through the years, but nothing has yet to replace the wooden pallet in terms of convenience, cost and reliability. Companies all over the world create pallet sizes for their shipments and then send those pallet sizes to their logistics companies. A pallet size is how much product can fit safely on one pallet and it is always important to maintain proper pallet size at all times.
Wooden Pallets Make For Easy Standardized Shipping Instructions
Wooden pallets come in standard sizes, which is what makes them so easy to use. Logistics experts all over the world have become very familiar with pallet sizes and that makes packing up products even easier. Standard pallet sizes also makes it easier for manufacturers to develop precise shipping instructions for their warehouses. When the pallets being used are all the same size, then detailed instructions can be written that make the shipping process more efficient. In the corporate world, better efficiency always means more money for the bottom line.
Since pallets come in standard sizes, it makes it easier for companies to re-use pallets they get from suppliers. While all companies purchase brand new pallets on a regular basis, they also re-use pallets they get in from their suppliers for materials and other items. The ability to re-use pallets makes them economical for companies and enhances the view that a pallet is the best option for a company to use for shipping. This standardization from the very beginning of pallet use is what has allowed the pallet manufacturing industry to grow steadily for hundreds of years.
Pallet Manufactures Sell To A Wide Variety Of Clients
Wooden pallet manufacturers can sell to any product maker and any company that ships product as well. Distributors, technology integrators, and large item resellers are also regular clients of pallet manufacturers. The pallet industry can count all of the biggest manufacturers in the world among their client base and that helps to create a brisk pallet manufacturing industry. Anytime you see a manufacturing facility that ships out finished products to distributors or other bulk customers, you are seeing another company that utilizes the wooden pallet industry.
Re-using wooden pallets only goes so far before the pallets have to be replaced. It is important to remember that these pallets are usually made of untreated wood, so they are not going to be able to withstand the elements very well. An exposed pallet sitting in a damp, cold warehouse will start to decompose and fall apart. Truly large manufacturers have warehouses full of product that may sit for months before it is shipped. In many cases, the pallet the product had been sitting on would need to be replaced before the product can ship out. This is why the larger manufacturers buy so many pallets on a regular basis.
Wooden Pallets Are Usually Not Made Of Recycled Materials
Wooden pallets are generally made from wood that is not used in the construction industry because it does not meet construction codes. The design of a pallet works in conjunction with the wood to create a very durable shipping implement. The wood itself, when looked at as individual boards, is not very strong. But when put together by an expert pallet manufacturing company, that unstable wood creates a pallet that can carry hundreds of pounds of brand new and delicate materials. When you look at them closely, you realize that pallets really are marvels of engineering.
The reason pallet makers use this kind of wood is because they cannot get recycled materials to make their pallets and they want to keep manufacturing costs down. This means that there is a steady supply of wood and raw materials coming into a pallet manufacturing facility to keep up with demand. A steady supply of materials means a steady flow of expenses that manufacturers will have to keep up with on a regular basis. This is where cash flow becomes important in the pallet industry, and this is why past due invoices create so many financial challenges.